J.P. Morgan analyst Matthew Boss on Tuesday upgraded his rating on Under Armour to neutral from underweight, sending the stock up 4% to close at $82.69, an all-time high for the company founded by a former college football player.

Boss, who kept his overweight rating on Nike, raised his price target on the stock to $80 from $70. Nike, a new member of the Dow, dipped 0.3% to $72.42 Tuesday after shares hit an all time high on Friday thanks to a better-than-expected fiscal first-quarter result and stronger-than-expected demand across North America and most other regions.

“With an expanding pie, a rarity in retail, and women’s substantial opportunity, competition is rising” from the likes of Athleta parent Gap Inc.
/quotes/zigman/227242/quotes/nls/gpsGPS, said Boss. “But we see innovation separating Nike and Under Armour from the pack. Nike remains our best-in-class way to play the space.”

Meanwhile, Boss noted that sporting goods retailers such as Dick’s Sporting Goods Inc.
/quotes/zigman/310940/quotes/nls/dksDKS are showcasing the Nike-Under Armour “domestic duopoly”, and New York area retailer Modell’s is featuring an even split between the two brands in its front windows. He said such innovations at Nike as its Dri-fit apparel and Under Armour’s Coldgear outfits are setting them apart from the competition.

Meanwhile, both brands also have an opportunity to capitalize on the growing women’s athletic apparel market, including such categories as shoes, hats, socks and hairbands, Boss said.

“We believe athletic/active apparel may be in the early innings of a multi-year lifestyle cycle with our field work highlighting Under Armour as a primary beneficiary (along with Nike),” he said. The analyst told MarketWatch he is keeping Under Armour at a neutral because it’s making investments to get its international operations underway, which are so far an untested opportunity.

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